CBO uses its projection of the earnings distribution to help keep its various models, projections, and estimates consistent with one another. Those models include:
Individual tax model: income and payroll taxes;
Social Security model: payroll taxes and benefit projections; and
Health insurance simulation model (HISIM): premium tax credits, Medicaid, and employer-sponsored health insurance.
CBO’s macroeconomic and population projections are also used throughout the agency to help keep models, projections, and estimates consistent.